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CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. A decision has been made to change the value of a major non-current asset, upon which depreciation is based, from original cost to a revalued amount. This results in a change in

A) accounting estimate and does not need to be disclosed.
B) accounting estimate and must be disclosed.
C) measurement basis and does not need to be disclosed.
D) measurement basis and must be disclosed.

2. Which one of the following practices is not considered creative accounting?

A) window dressing
B) profit smoothing
C) aggressive earnings management
D) trading in derivatives

3. Which one of the following parties provides information to ensure that the financial statements show a true and fair view?

A) shareholders
B) tax consultants
C) financial Institutions
D) directors of the company

4. A statement of comprehensive income reports on

A) financial performance.
B) solvency.
C) financial position.
D) changes in financial position.

5. A company's financial report is compliant with International Financial Reporting Standards. Where in the report would an investor find the amount of money received by the company for investment activities?

A) statement of cash flows
B) statement of comprehensive income
C) statement of changes in equity
D) statement of financial position

Solutions: